Tata Motors has announced the signing of a memorandum of understanding (MoU) for a long-term partnership with Volkswagen Group and Skoda, to explore strategic alliance opportunity for joint development of products.

The agreement was signed by Tata Motors CEO and MD Guenter Butschek, Volkswagen CEO Matthias Müller and Skoda Auto CEO Bernhard Maier.

The document lays down the scope and objectives in order to reach agreement on the modalities and terms of a long-term cooperation in identified areas of partnership.

Skoda Auto will take the lead on behalf of the Volkswagen Group to drive forward work towards development of vehicle concepts in the economy segment, a release said.

Tata Motors and Skoda Auto, representing the Volkswagen Group, will detail out the guiding principles and terms of cooperation in the next few months.